If you’re trying to save a few bucks on whatever it is your looking to buy, try members’-only shopping sites. HauteLook, which offers ‘exclusive’ sales on designer brand clothing, has raised a nice $10 million chunk of its first round of funding from Insight Venture Partners.
Although HauteLook says it is ‘exclusive’, it really isn’t – anyone can sign up for instant access. Once signed up, you get access to 36-72 hour sales of designer brand clothing directly from the brands at 40-75% off. Users receive e-mail notices daily on new sales. For design brand shoppers in these recessionary times, sounds pretty great.
The Los Angeles, Ca., based company works directly with the brands and designers and offers a platform to create these sales events in attempt to clear out their inventories. So you can expect to see clothing that is perhaps from last season, sort of like which Nordstrom Rack would offer.
HauteLook, has gained a bit of media attention being featured in Forbes, InStyle, US Weekly and People to name a few.
The company has plans to use the financing in several areas of its services. Adam Bernhard, CEO of HauteLook said, “we are excited to accelerate our growth along with investing into our technology to improve the member experience…and…also help us provide our brand partners with the best tools and functionality to help them better leverage this evolving channel.”
VatorNews is waiting on HauteLook's response to questions including numbers on its userbase, revenue, exact business model and past & current clients.
In response to userbase, HauteLook says it is approaching 1 million users.
In response to revenue, HauteLook responded saying it has experienced significant growth in its first year and expects sales of between $50mm-$80mm in 2009.
I asked HauteLook about a rev-share model with its partner designers & brands and it would not disclose any specifics.